Hmm intresting idea although i believe for the amount of other worth it would cause. E.g. making the siege engines hit the walls and seige ladders lean up agaisnt them from what your proposing with the uneven levells it would be hard to do. also the troop movement may be affected if they have to scrabble around some moss covered defence so it would look i believe anyway unrealistic as a fortification. I like the essence of the idea though so if the elven walls did contain more vines/ lichen etc to make it look more earthy it would be a good comprimise.

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